Vietnam: Procedures for Extending Tax Payment and Land Rent in 2024

Vietnam: Procedures for Extending Tax Payment and Land Rent in 2024 (Image from the internet)

On June 17, 2024, Hanoi issued Decree No. 64/2024/ND-CP extending the deadline for payment of value-added tax, corporate income tax, personal income tax, and land rent in 2024.

Vietnam: Procedures for Extending Tax Payment and Land Rent in 2024

- Taxpayers who directly declare and pay taxes to the tax authorities and are eligible for the extension must submit the Application for Extension of Tax Payment and Land Rent (hereinafter referred to as the Extension Request) either electronically, by directly submitting a paper copy to the tax office, or by postal service, using the form provided in the Appendix attached to Decree No. 64/2024/ND-CP to the directly managing tax authority at one time for all arising taxes and land rent in the tax periods to be extended concurrently with the submission of the monthly (or quarterly) tax declaration dossier as stipulated by tax management laws. In cases where the Extension Request is not submitted concurrently with the time of submitting the monthly (or quarterly) tax declaration dossier, the final submission deadline is September 30, 2024, and the tax authority will still grant the extension for tax and land rent of the periods arising before the receipt of the Extension Request.

In cases where the taxpayer has amounts to be extended under the management of different tax authorities, the directly managing tax authority of the taxpayer is responsible for transmitting the Extension Request information to the relevant tax authorities.

- Taxpayers are responsible for determining and ensuring their eligibility for the extension under Decree No. 64/2024/ND-CP. If the taxpayer submits the Extension Request to the tax authority after September 30, 2024, no extension for tax payment and land rent will be granted as per the regulations in Decree No. 64/2024/ND-CP. If the taxpayer supplements the tax declaration dossier for the extended tax period leading to an increase in the payable amount and submits it to the tax authority before the extended payment deadline, the extended tax will include the increased amount due to the supplemental declaration. If the taxpayer supplements the tax declaration dossier for the extended tax period after the extended payment deadline, the increased payable amount will not be extended.

- The tax authority is not required to notify the taxpayer of the acceptance of the extension for tax and land rent payment. If, during the extension period, the tax authority identifies that the taxpayer is not eligible for the extension, it will issue a written notice to the taxpayer, who must then pay the full amount of tax, land rent, and late payment interest for the period that was extended. If, after the extension period, an audit by a competent state body reveals that the taxpayer is not eligible for the extension under the regulations of Decree No. 64/2024/ND-CP, the taxpayer must pay the outstanding tax, fines, and late payment interest to the state budget.

- No late payment interest will be calculated on the extended tax and land rent amounts within the extended period (including cases where the taxpayer submits the Extension Request to the tax authority after submitting the tax declaration dossier as per regulations and where competent authorities identify an increase in the payable amount of the extended tax period upon inspection or audit). If the tax authority has calculated late payment interest (if any) on tax files eligible for extension as stipulated in Decree No. 64/2024/ND-CP, the tax authority will proceed with adjustments to exclude late payment interest.

- For investors in basic construction projects funded by the state budget, and for payments from the state budget for basic construction projects of ODA-funded projects subject to value-added tax, when making payment procedures with the State Treasury, they must attach a notice from the tax authority acknowledging the receipt of the Extension Request or an Extension Request with the contractor's confirmation of submission to the tax authority. The State Treasury, based on the dossier submitted by the investor, shall not deduct the value-added tax during the extension period. Upon the expiration of the extension period, the contractor must fully pay the extended tax as per regulations.

More details can be found in Decree No. 64/2024/ND-CP, effective in Vietnam from June 17, 2024, to December 31, 2024.

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